Mirae Asset Foundation Vs PCIT-6 (Bombay High Court)
In a recent judgment, the Bombay High Court has quashed an order by the Principal Commissioner of Income Tax (PCIT) that denied a charitable trust its tax exemption by refusing to condone a 24-day delay in filing a statutory form. The case, Mirae Asset Foundation Vs PCIT-6, underscores the judiciary’s view that tax authorities should adopt a judicious and equitable approach when dealing with minor procedural delays.
The dispute arose after the PCIT, in an order dated December 11, 2024, dismissed an application from the Mirae Asset Foundation. The foundation had sought condonation for a 24-day delay in filing Form 10B for the assessment year 2021-22. This form is mandatory for trusts claiming an exemption under Section 11 of the Income Tax Act, 1961. By rejecting the condonation request, the PCIT effectively denied the foundation a significant tax exemption.
During the proceedings before the High Court, the Revenue’s counsel defended the PCIT’s decision on two grounds. First, it was argued that while the initial delay in filing the form was 24 days, the foundation’s application to condone this delay was submitted nearly nine months later, suggesting a lack of diligence. Second, the Revenue claimed that the Form 10B submitted by the foundation was not digitally signed and was therefore invalid.
